© Reuters
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Investing.com – Exchange rate movements in the market witnessed a further decline in the Egyptian pound today Wednesday as it fell at its highest rate of 2022.
In these moments today, Wednesday, the Egyptian pound has lost 5 plates at once, posting the largest daily drop in a session since the last price release in March.
The Egyptian pound fell after the last devaluation, close to the lowest price recorded on the official market, according to data from the Central Bank of Egypt, to levels of 19.56, recorded on December 20, 2016.
pound now
According to the screen of the National Bank of Egypt and the Banque Misr today, Wednesday, the dollar exchange rate increased against the Egyptian pound by 5 piastres, from £ 19.45 in sales and levels of £ 19.39 in buying. at levels of 19.5 pounds for the sale and 19.44 pounds for the purchase.
In private banks, Abu Dhabi Islamic Bank, Commercial International Bank, Egyptian Arab Land Bank, The United Bank, Alexandria Bank, HSBC and Arab African International Bank, the dollar’s selling price recorded levels of 19.52 pounds, while the purchase, the price recorded levels close to 19.49 pounds per dollar.
According to data from the Central Bank of Egypt today, Wednesday, after updating the price screen, the pound fell to levels of 19.5384 pounds on sale, while the purchase price amounted to 19.4300 pounds per dollar.
Yesterday, Tuesday, data from the Central Bank of Egypt revealed that 100 billion pounds of cash was withdrawn for the sixth time in about a month, through open deposits with fixed income auctions.
the lowest ever
The pound’s losses have increased against the dollar since Egypt’s new central bank governor, Hassan Abdullah, took over the bank’s presidency on August 18, 2022, succeeding the resigned governor, Tariq Amer, causing the pound to lose 34 plates in total.
As the pound fell since the decision to liberalize exchange rates, or as described by the former central governor at the time, the correction in exchange rates increased by £ 3.55, which is the equivalent of a 23% drop. .
According to official data from the Central Bank of Egypt for the exchange rate of the dollar against the pound, the lowest price was recorded on December 20, 2016, where the dollar exchange rate was 19.5605, the highest official ever.
Important decisions
The Central Bank of Egypt has announced for the sixth consecutive time the withdrawal of £ 100 billion of excess liquidity at local banks, as part of the linked deposit mechanism it issues weekly to control the money supply in the market.
The Central Bank issued new instructions to facilitate import operations, as well as other instructions previously given, following a meeting of the Central Bank’s Deputy Governor with manufacturers.
Jihad Azour, director of the Middle East and Central Asia Department at the International Monetary Fund, said the IMF’s negotiations with Egypt to obtain funding are in constant progress and will soon be completed.
interest decision
The Central Bank of Egypt will hold a meeting of the Monetary Policy Committee to regulate interest rates on deposits and loans tomorrow, Thursday 22 September, according to the schedule of the Monetary Policy Committee meeting for 2022.
The Central Bank of Egypt had violated the expectations of experts and analysts in the last meeting in August that the Central Bank of Egypt would raise the key interest rates by 1%.
The Central Bank decided to fix the interest rate twice in a row in June and August, after raising it by a total of 3% for the first time in 5 years, of which 1% on March 21 at an exceptional meeting of the Committee. of monetary policy, and 2% last May.
Expectations
The Research Department of Zilla Capital expected management of the Central Bank of Egypt to set the interest rate at the next meeting of the Monetary Policy Committee, scheduled for tomorrow.
Economist Hani Genena predicted a rate hike at next Thursday’s monetary policy meeting, noting that the rate hike is likely to reach 2%.
said Radwa Al-Swaify; Al-Ahly Pharos’ head of research said that given the current unusual circumstances the country is going through and the pressure on the budget deficit, the Central Bank of Egypt is expected to decide to deviate from the usual path, and not leave at the option of raising the interest rate.
On the other hand, Muhammad Abu Pasha was expected; The chief economic analyst, vice president of research at EFG Hermes, raised the interest rate at the next meeting of the Monetary Policy Committee by 100 basis points.
predicted Amr Al-Alfi; Head of Research at Prime Securities, he raised interest rates by 1% due to accelerating inflation, noting that central bank focus on expectations, as well as rising dollar prices, is one of the pressures. inflationary.
The Federal Reserve – the Central Bank of the United States – meets today to discuss the fate of interest, in light of expectations of a 0.75% increase to 1%, which comes a day before the Central Bank of Egypt meet for the same purpose.
Investment certificates
Yesterday, Tuesday, local media quoted well-informed sources as saying that the Central Bank of Egypt is about to make the decision to raise interest rates on deposits and loans for the third time in 2022.
According to the news, the decision by the Central Bank of Egypt is expected to come in an attempt to control inflation rates at the Monetary Policy Committee meeting at the weekend.
The source said the Central Bank will raise the interest rate on deposits and loans by 150 basis points at the next meeting, to reach 12.75% and 13.75%.
The source indicated that, in conjunction with the increase in interest rates, the Central Bank is always reissuing investment certificates of 18% through the National Bank of Egypt and Egypt; To compensate holders of Egyptian pound deposits for the decline in its value against the dollar.
The source added that these measures, which the Central Bank is expected to take at next Thursday’s meeting, will have a strong impact on the Egyptian economy, increase the value of client concessions on their currency holdings and reduce dollarization operations.
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